Review of Not for Profit Accounting Systems -- 2006

by Mary Girsch-Bock On Oct 1, 2006

From the October 2006 Issue

Nonprofit organizations continue to grow at an enormous pace. The time frame
of 1996 to 2004 saw a 53.5 percent increase in public charities and a 75 percent
increase in private foundations. According to the IRS, at the end of 2004, there
were close to 1.4 million nonprofit organizations in the United States.

While the technology needs for these organizations may vary, each one needs
to establish a way of maintaining grants, keeping tracking of donors and pledges,
paying employees, and producing required reports. If you’re a nonprofit
organization looking for a software product to help you better accomplish these
tasks, or if you’re an accountant looking to recommend such a solution,
how do you go about choosing a product? To answer that question, you’ll
first need to evaluate your budget. Many organizations have limited budgets,
especially at the onset. Look at what you can afford today as well as what that
program may offer you in the future. Do you want an entry-level product that
will suffice while your organization has few needs or do you want a product
that can grow along with your organization?

The products reviewed here vary widely. Entry-level products are designed
for small organizations and offer quick installations, easy navigation and decent
reporting options. They are also affordably priced, even for those on a limited budget. While these products provide out-of-the-box capability, they
leave little room for customization or future growth.

Other nonprofits may be looking to upgrade to a more scalable product that
offers increased user capabilities and additional modules for purchase. These
products often fall between the entry-level products and the enterprise-level
products, and they can prove to be quite

sufficient for mid-level organizations. They are usually more expensive, (but
not always) and provide more scalability.

Enterprise-level products are top of the line and are ideal for nonprofits
with complex needs. These products offer all of the functions as the other products
but usually contain more management level capabilities and often include a fundraising
module that can track detailed information about donors, including historical
data.

Does this mean that you should skip over the entry-level products? No.

Do those products automatically receive lower ratings? No.

Entry-level products can be an excellent choice for those whose needs and
budget are minimal. They can’t really be compared to enterprise-level
products, and they don’t claim to compare. What they do claim is to help
the small nonprofit with their needs, and they do it well. If they do what they
claim to do, then they deserve a good rating. We can all agree that a software
product designed for up to five users will not have the same capabilities as
the software product designed for unlimited users. It doesn’t mean they
do not do their job well.

I hope you find the reviews helpful. And don’t forget to visit the software
vendor’s websites for additional information. 

The AccuFund Accounting Suite offers a series of
modules designed specifically for nonprofit and government agencies. Additional
modules can be added to customize the software for a specific type of agency.

Blackbaud Inc. has recently released a new version
of its nonprofit financial management program, The Financial Edge. Designed
to provide accounting and financial functionality to nonprofits, The Financial
Edge also...

Cougar Mountain recently released Version 10.3 of
its FUND Suite. Aimed specifically at small to midsize nonprofits, Version
10 comes equipped with new features such as the ability to create a mirror
image...

CYMA Systems, Inc. has offered the nonprofit edition
of its popular accounting software to midsize nonprofit organizations since
1980. With the addition of a Grant Tracking module, CYMA continues to provide
value to both new and existing customers.

Donald R. Frey and Company, Inc. has released version
10 of its fund accounting software designed for midsize nonprofit organizations.
BUCS – Version 10 contains numerous new features and enhancements.

FUND E-Z Development Corporation has been providing
affordable nonprofit software for over 15 years. Version 9 of FUND E–Z
Fund Accounting Software is the latest version of this affordably priced,
features-driven program.

Since branching off into specialty editions, QuickBooks
has increased its customer base quite effectively. One of those specialty
editions is QuickBooks: Premier Nonprofit Edition 2006. Designed for the
smaller nonprofit organization, QuickBooks: Premier Nonprofit is a good
choice for startup nonprofits.

Since 1976, FundWare has provided nonprofit organizations
with a quality financial product. Now part of Kintera Inc., Kintera FundWare
software continues to be a major player in the nonprofit software sector.
Chip Conway is the finance manager at Ace Construction Authority, a governmental
construction agency in the Los Angeles area.

Since 1982, Sage Software has been providing fund
accounting software for small to midsize nonprofit organizations, including
state and local government agencies, through Sage MIP Fund Accounting. Formerly
known as MIP Fund Accounting, version 8 of this comprehensive software product
will soon be introduced to the public.

Newly released from Sage Software, Peachtree Premium
Accounting for Nonprofits 2007 is the latest nonprofit industry-specific
version of this popular entry level accounting program. Peachtree for Nonprofits
is designed for smaller organizations.

It is our hope that the nonprofit software reviews
you’ve read have assisted you with your short list to finding a software
product that suits both your needs and your budget. The reviews covered
six distinct areas.